Penang govt's transparency over mega projects award questioned

GEORGE TOWN, March 3 (Bernama) -- The Penang Barisan Nasional (BN) Youth has questioned the DAP-led state government's transparency in awarding four road projects worth RM6.3 billion, including an underwater tunnel from Gurney Drive to Bagan Ajam.

Its information chief, H'ng Khoon Leng said the announcement caught the people by surprise for the mega projects were awarded to a company with paid-up capital of RM2 and an authorised capital of RM100,000.

He said this was contrary to the Taman Manggis housing which stated that developers needed to have at least three per cent of the total value of the project.

"What are the criteria required in terms of paid-up capital for a major infrastructure project like an underwater tunnel ... RM2?" H'ng told reporters, here today.

Meanwhile, Penang Umno Youth chief Shaik Hussein Mydin said Chief Minister Lim Guan Eng should be explained to the people of Penang on the tender process for developers of such projects should have strong financial resources and not merely supporting letters and registered company names.

"Class A contractors should also have a minimum paid-up capital of RM600,000. On a contrary, a RM2 company was awarded a RM6.3 billion project," he added.

Shaik Hussein also questioned why there were no China's Beijing Urban Construction Group (BUCG) directors on the board of Consortium Zenith BUCG Sdn Bhd while both directors of the consortium were locals.

"We know of the existence of BUCG, but do not know anything about Consortium Zenith BUCG," he said.

Shaik Hussein also questioned the 30-year concession and a 44 ha of land worth RM2.5 billion in Tanjung Pinang granted to Consortium Zenith BUCG as compensations.